Miller just turned down Budweiser's $104 billion takeover offer

SABMiller has rejected a third takeover offer from US-Belgian
rival AB InBev that values the beer maker at $103.9 billion
(£68 billion).

Brewing giant AB InBev went public with a takeover offer for
London-listed rival SABMiller on Wednesday, revealing it already
had two bids knocked back by management.

But SABMiller put
out a statement just hours later saying the board
"unanimously rejected" the offer because it "substantially
undervalues SABMiller, its unique and unmatched footprint, and
its standalone prospects."

US company AB InBev is the world's largest beer maker,
responsible for brands like Budweiser, Corona, and Stella Artois,
while SABMiller is the second-largest brewer in the world and
makes beers like Fosters and Grolsch.

The latest offer values SABMiller at £68.14 billion ($103.9
billion) and AB InBev says the SAB board has already rejected
offers at £38 ($57.96) per share and £40 ($61) per share. SAB
shares closed at £37.28 ($56.86) in London on Tuesday.

But SABMiller signaled pretty quickly that it would likely reject
the deal. In a statement from the company shortly after AB
InBev's offer, SAB said management has already met to consider a
£42 a share offer speculatively floated by AB InBev earlier in
the week, but it had concluded that "it still very substantially
undervalues SABMiller."

SABMiller is the crown jewel of the global brewing industry,
uniquely positioned to continue to generate decades of standalone
future volume and value growth for all SABMiller shareholders
from highly attractive markets.

AB InBev needs SABMiller but has made
opportunistic and highly conditional proposals,
elements of which have been deliberately designed to be
unattractive to many of our shareholders. AB InBev is
very substantially undervaluing SABMiller.

SABMiller shares jumped over 3% in London on news of the bid but
have come crashing back down after the rejection. Share are
currently up around 0.9% at 1.18 p.m. BST (8.18 a.m. ET).

The charm offensive did some good. SABMiller's largest
shareholder, Altria, put
out a statement on Wednesday morning saying it supports the
deal and "urges SABMiller’s board to engage promptly and
constructively with AB InBev to agree on the terms of a
recommended offer."

We have the highest respect for SABMiller, its employees and its
leadership, and believe that a combination of our two great
companies would build the first truly global beer company.

Both companies have deep roots in some of the most historic beer
cultures around the world and share a strong passion for brewing
as well as a deep seated tradition of quality. By bringing
together our rich heritage, brands and people we would provide
more opportunities for consumers to taste and enjoy the world's
best beers.

AB InBev argues in its offer document that a merger would
"generate significant growth opportunities from marketing the
companies' combined brand portfolio through a largely
complementary distribution network."